Axis Securities initiates coverage on Inox Wind, sees upside potential of 30%
Domestic brokerage firm ICICI Securities initiated coverage on Inox Wind (IWL) with a target price of Rs 185 stating that the company is well-positioned to benefit from the tailwinds in the wind sector.
Domestic brokerage firm ICICI Securities initiated coverage on (IWL) with a of Rs 185 stating that the company is well-positioned to benefit from the tailwinds in the .With the interest-bearing debt coming down to zero, robust order book, technological readiness and execution capability along with the government’s renewed focus on wind capacity additions, has assigned a target P/E multiple of 30x on our FY26 EPS estimate.
As of March 31, 2024, the company had a strong order book at 2.7 GW, with a mix of all customers, PSUs, IPPs, C&I market and retail market accompanied by a healthy mix of turnkey and equipment supplies, which will be sold for the next 2.5 years.
Also read:
Further, in FY24, the company’s execution stood at 376 MW as compared to 104 MW in FY23, indicating a 262% YoY jump in execution. With a large order book, the company expects higher order execution from FY25 onwards (guidance of 800/1,200 MW for FY25/26E) with a target of 2 GW of annual execution in the medium term.
The shares of Inox Wind have shown strength in its performance in the recent time, giving multibagger returns of over 250% in the last one year while having grown 7 times in 2 years’ time. The stock witnessed minor declines of 4% in the last 3 weeks but in the current calendar year, the stock has gained 8.5%.
Technically, the stock is in a consolidation phase on the daily chart, trading below its 20 and 50 day exponential moving averages, near the 46 level on RSI.
IWL shares were trading nearly 1% higher on BSE around 2:15 pm today.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Source: Stocks-Markets-Economic Times
